IMF sees modest 2013 improvement for world economy

Published: January 23, 2013 10:25AM

WASHINGTON (AP) -- The International Monetary Fund is projecting a modest uptick in global economic growth for 2013. But an IMF report released Wednesday also warns that problems in the eurozone and the United States could derail momentum.

The report was an update of the fund's World Economic Outlook. It was largely consistent with the original report's estimate in October, revising global growth down slightly by a tenth of a percentage point to 3.5 percent. The IMF estimates that the world economy grew 3.2 percent in 2012.

The IMF downgraded its forecast for the eurozone, projecting a slight economic contraction for 2013. It warned that the eurozone "continues to pose a large downside risk to the global outlook."

The report was more optimistic about the U.S. It forecasts 2 percent growth for 2013.